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Submission to Treasury on Enhancements to Unfair Contract Term Protections Consultation

March 2020

senior couple signing contract for retirment village
CHOICE staff
CHOICE staff

CHOICE is urging the Australian government to make unfair contract terms illegal. Our existing unfair contracts legislation is not strong enough to stop businesses from including unfair terms in their contracts. Education and industry engagement have been largely ineffective in changing business behaviour and without strong deterrents, the law will continue to deliver adverse outcomes for consumers. It is crucial that the Australian government makes unfair contract terms illegal, and attaches appropriate penalties to businesses that breach the law.

CHOICE welcomes the recent extension of protections from unfair contract terms in insurance contracts. However, the government needs to go one step further in reducing consumer harm by making it illegal to include unfair contract terms in consumer and insurance contracts. This would mean that companies would face meaningful penalties for serious breaches.

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